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Beyond the hype — how to actually invest into defence startups
- Investing in defense startups requires a unique approach due to the sector's specific challenges and market dynamics.
- Military customers prioritize technologies that provide immediate combat impact over futuristic tech.
- Integration with existing systems and procurement plans is crucial for defense tech startups to succeed.
- Patience is key in the defense industry, as converting great products into revenue can take years.
- Successful defense startups map their products to existing requirements and infrastructure of target customers.
- Navigating the procurement bureaucracy and having a strong go-to-market strategy are vital for defense startup success.
- Defense tech must fit into a larger operational puzzle to be adopted; standalone products may struggle to gain traction.
- Exits in defense usually involve going public or selling to prime contractors, with IPOs requiring substantial scale and growth.
- Defense primes strategically evaluate acquisitions based on the potential to secure lucrative contracts.
- Acquisition by a prime contractor is common for defense startups filling critical capability gaps.
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